Correlation Between Massmutual Select and Mfs Blended
Can any of the company-specific risk be diversified away by investing in both Massmutual Select and Mfs Blended at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Massmutual Select and Mfs Blended into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Massmutual Select Diversified and Mfs Blended Research, you can compare the effects of market volatilities on Massmutual Select and Mfs Blended and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Massmutual Select with a short position of Mfs Blended. Check out your portfolio center. Please also check ongoing floating volatility patterns of Massmutual Select and Mfs Blended.
Diversification Opportunities for Massmutual Select and Mfs Blended
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between MASSMUTUAL and Mfs is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Massmutual Select Diversified and Mfs Blended Research in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Mfs Blended Research and Massmutual Select is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Massmutual Select Diversified are associated (or correlated) with Mfs Blended. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Mfs Blended Research has no effect on the direction of Massmutual Select i.e., Massmutual Select and Mfs Blended go up and down completely randomly.
Pair Corralation between Massmutual Select and Mfs Blended
Assuming the 90 days horizon Massmutual Select is expected to generate 4.54 times less return on investment than Mfs Blended. In addition to that, Massmutual Select is 1.0 times more volatile than Mfs Blended Research. It trades about 0.01 of its total potential returns per unit of risk. Mfs Blended Research is currently generating about 0.05 per unit of volatility. If you would invest 1,304 in Mfs Blended Research on September 4, 2024 and sell it today you would earn a total of 389.00 from holding Mfs Blended Research or generate 29.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Massmutual Select Diversified vs. Mfs Blended Research
Performance |
| Timeline |
| Massmutual Select |
| Mfs Blended Research |
Massmutual Select and Mfs Blended Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Massmutual Select and Mfs Blended
The main advantage of trading using opposite Massmutual Select and Mfs Blended positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Massmutual Select position performs unexpectedly, Mfs Blended can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Mfs Blended will offset losses from the drop in Mfs Blended's long position.| Massmutual Select vs. Massmutual Select Mid | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap | Massmutual Select vs. Massmutual Select Mid Cap |
| Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor | Mfs Blended vs. Mfs Prudent Investor |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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